The Committee on Capital Markets Regulation reveals their world-changing recommendations in detail today. Damian Paletta has a preview on one of the Wall Street Journal blogs. The committee is “…an independent and nonpartisan 501(c)(3) research organization dedicated to improving the regulation of U.S. capital markets,” which exactly the kind of languages that makes us immediately suspicious. We are even more alarmed when it looks like L. Ron Hubbard managed to sneak into the meetings by shuffling the letters in his name. (Despite the fact that we are highly suspicious of Columbia, we’re sure he’s eminently qualified, but if he starts claiming to be the reincarnation of Cecil Rhodes or recruiting the “Commodore’s Messengers” we are going to get worried fast).
Likewise, we do sort of have to wonder about a financial system fix that includes the recommendation to “Ban or limit high-risk mortgages from being securitized.” Oh yes. Those pesky high-risk mortgages. Would those be from borrowers with FICO scores below X? (Maxine Waters will have a cerebral embolism when she sees the “discriminatory effect” that is likely to have on interest rates). Perhaps mortgages from specific geographic areas? (Oops).

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